Microsoft is heavily investing in Azure for cloud growth, with strong revenue and market performance.

Microsoft is investing heavily in Azure to drive cloud growth, with over 70 regions and 400+ data centers globally. Third-quarter fiscal 2025 saw $16.7 billion spent on cloud and AI infrastructure. Revenues in this segment grew 21% year-over-year, with Azure and cloud services up 33%.

To accelerate cloud adoption, Microsoft plans to invest $3 billion in India over the next two years. Fourth-quarter fiscal 2025 Intelligent Cloud revenues are expected to reach $28.75-$29.05 billion, driven by 34-35% growth in Azure. The Zacks Consensus Estimate for this period is $28.9 billion.

Facing competition from Google Cloud and Oracle, Microsoft’s Azure continues to innovate. Google Cloud integrates NVIDIA GPUs for efficient AI model training, while Oracle’s partnership with xAI is set to revolutionize enterprise AI. Oracle projects 26-30% cloud revenue growth in the first quarter of 2026.

Microsoft’s stock has outperformed the industry and sector, with a forward P/S ratio of 11.79X. The Zacks Consensus Estimate for fiscal 2025 earnings is $13.36 per share, indicating a 13.22% year-over-year growth. Microsoft currently holds a Zacks Rank #2 (Buy).

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Read more at Nasdaq: Microsoft’s Azure Driving Cloud Growth: What’s the Path Ahead?